AuthenticID raises $100M as biometric authentication drives rapid market growth
AuthenticID has raised $100 million in a minority investment by Long Ridge Equity Partners to support the expansion of its biometric identity proofing technology within the telecommunications, financial services, government, and consumer sectors to strengthen trust and mitigate fraud, according to a company announcement.
Digital identity has been drawing a flood of investment capital, and little wonder, as the global market is expected to approach $50 billion within five years, according to a new market report. Particularly good news for AuthenticID, biometrics and large enterprises in North America are expected to make up major portions of the market.
The company provides digital identity proofing solutions to leading enterprises, including telecom carriers and financial institutions, and says it also powers many leading global digital identity platforms. AuthenticID also says its ID document-centric identity verification platform is the only completely automated identity proofing option on the market.
AuthenticID recently claimed that its cloud Identity Proofing service is capable of processing 35 million fully automated transactions in a day, which may make it the fastest technology of its kind on the market. The company also claims on its website that its partners get access to the experience of “pioneers in face, fingerprint and palm biometrics … DNA … (sic) and psychometric analysis.”
The funding will be used to drive research and development, go-to-market, and market awareness initiatives to support its future growth, AuthenticID Founder Blair Cohen says. It will also be used to develop solutions for extending digital identity use cases.
AuthenticID’s CatfishAIR Biometric Identity Platform was integrated with Danal’s mobile identity solution in 2018 to verify the device-holder with selfie biometrics.
“Our platform is relied upon by a majority of the U.S. wireless carriers and various identity platforms to securely establish identity,” comments Jeff S. Jani, CEO, AuthenticID. “Our differentiator is the significant ROI we deliver to customers, from stopping more fraud to converting more sales than our digital identity competitors. Our mission is to improve the security for all of our collective identities.”
Tech-focused boutique investment bank Union Square Advisors served as AuthenticID’s financial advisor for the transaction.
Digital identity market to double in next five years
The global market for digital identity solutions is projected by MarketsandMarkets to grow from $23.3 billion in 2021 to $49.5 billion in 2026, driven in large part by the use of fingerprint and face biometrics on smartphones.
The anticipated compound annual growth rate of 16.2 percent is expected to be boosted by the spread of authentication across verticals beyond BFSI (banking, financial services and insurance) and aviation. The ‘Digital Identity Solutions Market…’ report forecasts cloud technologies to outpace on-premise deployments, revenues from large enterprises to grow faster than those from SMEs, and North America to account for the largest market share among regions.